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Re: Tax loss harvesting

Yes, there is a benefit of TLH, but it isn't as great as it seems at first. You've cashed out $250 in losses which you can put to work that was tied up in cost basis, but you've also downwardly adjusted your cost basis, so when you regain the $1000 down the road and you sell it, you'll have to pay ...
by kaneohe
Fri Aug 29, 2014 1:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting
Replies: 31
Views: 1282

Re: Calculating MAGI for Medicare Part B.

Thanks to Mike and sscritic for correcting my response. ssc sent me a PM citing the same items that Mike did which I was not aware of because I only read the same publication that OP cited. For most the differences will not be critical but for some it might be very important. I sent ssa a message po...
by kaneohe
Thu Aug 28, 2014 12:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Calculating MAGI for Medicare Part B.
Replies: 5
Views: 244

Re: Tax loss harvesting

The market recovers and after those 30 yr your investment is again worth 90K. If you sell, you have 90K of gains and if still in the 25% bracket must pay 22.5K in taxes Your net benefits are the investment gains generated by your 22.5K in tax benefits over those 30 yrs.. The LT capital gains tax ra...
by kaneohe
Thu Aug 28, 2014 11:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting
Replies: 31
Views: 1282

Re: Calculating MAGI for Medicare Part B.

Specifically for Medicare, how do I estimate my MAGI if I start with the Adjusted Gross Income on my 1040 tax form? I assume that the taxable portion of my social security is already in the Form 1040 AGI. Do I also add back the 15% that was not taxed? I assume that my tax-free municipal bond intere...
by kaneohe
Thu Aug 28, 2014 11:02 am
 
Forum: Personal Finance (Not Investing)
Topic: Calculating MAGI for Medicare Part B.
Replies: 5
Views: 244

Re: Chase savings account bonus deposit

Read the offer closely. I suspect you will have to keep the $15K in the account for six months in order to keep the bonus. . Reading the offer closely (and perhaps asking Chase to confirm) is a very good idea. For me, a year or so ago, there was no requirement to keep the 15K opening amount for any...
by kaneohe
Thu Aug 28, 2014 9:12 am
 
Forum: Personal Consumer Issues
Topic: Chase savings account bonus deposit
Replies: 16
Views: 1022

Re: Tax loss harvesting

If you have an ideal BH type portfolio of index funds that don't distribute LTCGs, then you are correct that you only get to use 3K of losses each yr. If you are in the 25% bracket, that's $750 in savings each yr which is not insignificant. If you harvest only during major downturns,that shouldn't b...
by kaneohe
Thu Aug 28, 2014 1:10 am
 
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting
Replies: 31
Views: 1282

Re: Chase savings account bonus deposit

Read the offer closely. I suspect you will have to keep the $15K in the account for six months in order to keep the bonus. Or, maybe not. If OP and/or kaneohe is correct, one might be able to cycle the money in and out, many times over, with multiple accounts, keeping the minimum balance ($300) and...
by kaneohe
Thu Aug 28, 2014 12:49 am
 
Forum: Personal Consumer Issues
Topic: Chase savings account bonus deposit
Replies: 16
Views: 1022

Re: Chase savings account bonus deposit

I got the idea to open one for me and one for my wife and it wasn't my idea to do that. Possibly the bankers get rewarded on how many new accounts they open so it may be a win-win situation.
by kaneohe
Wed Aug 27, 2014 10:13 pm
 
Forum: Personal Consumer Issues
Topic: Chase savings account bonus deposit
Replies: 16
Views: 1022

Re: Pay taxes or high fees: should I sell underperforming Am

If you make charitable contributions, consider donating your long-term holdings to charity.........gets rid of your tax bill and high ER at the same time.
by kaneohe
Wed Aug 27, 2014 9:54 am
 
Forum: Investing - Help with Personal Investments
Topic: Pay taxes or high fees: should I sell underperforming AmCent
Replies: 7
Views: 389

Re: Chase savings account bonus deposit

To the best of my knowledge I have not received any calls but then I use the answering machine as the primary receiver so it is difficult to know for sure. This is just a guess........but I do know that they track your history on previous accounts.......because they told me of some of my prior histo...
by kaneohe
Tue Aug 26, 2014 12:26 am
 
Forum: Personal Consumer Issues
Topic: Chase savings account bonus deposit
Replies: 16
Views: 1022

Re: strategy to get brokerage bonuses

What kind of taxes do you pay on this transfer bonuses? I asked TDAmeritrade a few months ago, and was told that it was not reported if it is less than $600. Even if not reported to you(like bank interest < $10), you are still responsible for reporting and paying taxes on the bonus......I think it'...
by kaneohe
Mon Aug 25, 2014 11:03 am
 
Forum: Personal Finance (Not Investing)
Topic: strategy to get brokerage bonuses
Replies: 50
Views: 3026

Re: using the 15% tax bracket

This is a useful concept if you have little other income so the RMD is taxed at "effective" rates. However if you have significant other income (pensions/SS/interest/div/etc), that other income will swamp the lower brackets and the RMDs would then be taxed at much higher "effective&q...
by kaneohe
Sun Aug 24, 2014 4:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: using the 15% tax bracket
Replies: 42
Views: 4275

Re: using the 15% tax bracket

A key factor in Roth conversions is whether one's tax bracket is higher or lower in retirement. Note also that a large RMD is actually taxed at multiple rates. The first dollars are not taxed at all with additional portions taxed at 10%, 15%, and then any higher rates. . This is a useful concept if...
by kaneohe
Sun Aug 24, 2014 3:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: using the 15% tax bracket
Replies: 42
Views: 4275

Re: Chase Freedom reward changes in 2016

kaneohe wrote: Don't they allow you to take the reward as a statement credit? Isn't that as good as a paper check, maybe better, since you don't have to deal with the check? Probably quirky and old fashioned, but I like to accumulate cash kickbacks and spend it on the grand kids exclusively. If the...
by kaneohe
Sat Aug 23, 2014 8:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Chase Freedom reward changes in 2016
Replies: 25
Views: 3403

Re: Chase Freedom reward changes in 2016

"the discontinuation of paper checks" No cash back is a deal breaker for me. I need my Nana money. When I was told CHASE would discontinue their rewards check, I put on my things to-do-to list to find another card to supplement my Am Ex (Costco) card. Ideas? Don't they allow you to take t...
by kaneohe
Sat Aug 23, 2014 5:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Chase Freedom reward changes in 2016
Replies: 25
Views: 3403

Re: 3.85% medicare tax?

no interest?
by kaneohe
Fri Aug 22, 2014 4:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: 3.85% medicare tax?
Replies: 6
Views: 706

Re: Withdrawal of Roth IRA Contributions

You need to file F8606 . see http://www.irs.gov/pub/irs-pdf/f8606.pdf pt III on p. 2. IRS needs to see that you aren't taking earnings which you demonstrate by showing your basis in contributions and your current withdrawals. You also need to read the instructions for certain line items if you have ...
by kaneohe
Mon Aug 18, 2014 6:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Withdrawal of Roth IRA Contributions
Replies: 11
Views: 2115

Re: Help!! Can some one explain tax loss harvesting

perhaps looking at Sch D might help. http://www.irs.gov/pub/irs-pdf/f1040sd.pdf The form is more complex than it used to be but the idea is the same. Part I reports short term gains/losses . Lines 1-3 report current yr gains/losses. Line 6 is the short term loss carryover from the previous yr. The s...
by kaneohe
Tue Aug 12, 2014 10:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help!! Can some one explain tax loss harvesting
Replies: 16
Views: 1051

Re: New savings account?

I've been w/ Synchrony (GE Retail) for 3-4 months spanning the transition to Synchrony. So far so good. They improved the m.mkt so that the yield structure is flat and not tiered as it used to be so you can keep a smaller balance there (there is a min. balance of ? 1.5K ? to avoid fees) if you want ...
by kaneohe
Fri Aug 08, 2014 10:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: New savings account?
Replies: 5
Views: 653

Re: Question re- EE Bonds

If you were at least 24 years old when you received any of the ones issued after 1989, they qualify for tax free treatment if you use them for qualified education expenses for yourself or for a dependent. http://www.irs.gov/publications/p970/ch10.html from your link: Qualified U.S. savings bonds. A...
by kaneohe
Thu Aug 07, 2014 11:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Question re- EE Bonds
Replies: 18
Views: 1629

Re: Best way to handle estimated taxes on unequal income?

The estimated tax penalty is 9%, but it is applied on an annualized basis. But if you mean the "prior-year tax liability" safe harbor, it is a cliff. Underpay the safe harbor amount by a few dollars, and your entire balance due is subject to the penalty calculation. From that point on, it...
by kaneohe
Thu Aug 07, 2014 5:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Best way to handle estimated taxes on unequal income?
Replies: 24
Views: 1376

Re: Best way to handle estimated taxes on unequal income?

It is also worth noting that the safe harbor is very important and very rigid in its application. Missing it by even a few dollars can subject you to the estimated tax penalty if you wind up owing at year-end. It is better to exceed the safe harbor amount, as added insurance against a math error. ....
by kaneohe
Thu Aug 07, 2014 10:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Best way to handle estimated taxes on unequal income?
Replies: 24
Views: 1376

Re: Best way to handle estimated taxes on unequal income?

Would you be able to increase your withholding enough so that in combination with your equal quarterly estimated taxes you meet the safe harbor of
100% of last yrs taxes (110% if AGI > 150K)? http://fairmark.com/estimate/howmuch.htm
by kaneohe
Thu Aug 07, 2014 12:18 am
 
Forum: Personal Finance (Not Investing)
Topic: Best way to handle estimated taxes on unequal income?
Replies: 24
Views: 1376

Re: dividend yield when stock price change

You need to distinguish between fundamental things....like how much the dividend per share is.......and defined/derived quantities like yield which can be whatever you define it as; sometimes some definitions are more meaningful than others. Suppose you live off your dividends and would like to maxi...
by kaneohe
Tue Aug 05, 2014 8:53 pm
 
Forum: Investing - Theory, News & General
Topic: dividend yield when stock price change
Replies: 38
Views: 1299

Re: Investing for those in the 15% tax bracket

Maybe you can help educate me. Let's assume I am in the 15% tax bracket this year. I put in $100 into a Roth IRA and $100 into a traditional IRA this year and buy 1 share in each of Vanguard's Total Stock Market Index Fund. I don't touch the investments for 30 years. After 30 years, I sell the shar...
by kaneohe
Mon Aug 04, 2014 1:13 pm
 
Forum: Investing - Theory, News & General
Topic: Investing for those in the 15% tax bracket
Replies: 38
Views: 2770

Re: Is Medigap insurance really needed?

Let me clarify my question. Will Medigap plan F cover ALL the medical expense(s) left over after medicare pays their part for covered expense(s)? Thanks Yes unless you choose the high deducible plan F. Then you have to pay the deductible first. Here's a chart comparing all the Medigap plan coverage...
by kaneohe
Sun Aug 03, 2014 9:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is Medigap insurance really needed?
Replies: 83
Views: 4154

Re: Is Medigap insurance really needed?

I could only find 2 Medigap plans that have a maximum out of pocket limit stated. For all those who chose Plan F (which appears to be the best plan but does not have a limit), is this a concern at all, or am I missing something and should not worry about that? I know MA plans have limits, but I wan...
by kaneohe
Sun Aug 03, 2014 9:52 am
 
Forum: Personal Finance (Not Investing)
Topic: Is Medigap insurance really needed?
Replies: 83
Views: 4154

Re: Confused about HSA

http://www.hsaed.com/who_can_have_an_hsa_

check this out for FSA & HSA . Apparently you can't have a full-featured FSA and an HSA at the same time ; but a limited purpose FSA is ok.
by kaneohe
Fri Aug 01, 2014 6:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Confused about HSA
Replies: 9
Views: 567

Re: "Backdoor" Roth [tax liability of traditional IRA]

see http://www.irs.gov/pub/irs-pdf/f8606.pdf which is the form which reports Roth conversions in Pt II. See the first line on p.1 which reads: Name. If married, file a separate form for each spouse required to file Form 8606. See instructions. The separate form for each spouse tracks only their indi...
by kaneohe
Fri Aug 01, 2014 12:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: "Backdoor" Roth [tax liability of traditional IRA]
Replies: 6
Views: 475

Re: Roth IRA Conversion and Medicare surtax

an interesting read: http://www.kitces.com/blog/how-ira-withdrawals-in-the-crossover-zone-can-trigger-the-3-8-medicare-surtax-on-net-investment-income/ According to this, the Roth conversion is not surtaxed (not investment income); however due to the interaction of AGI and the surtax, the Roth conve...
by kaneohe
Fri Aug 01, 2014 11:43 am
 
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Conversion and Medicare surtax
Replies: 3
Views: 527

Re: Backdoor Roth IRA Conversion timing?

Perhaps consider this (from a link in the wiki): http://thefinancebuff.com/the-backdoor-roth-ira-a-complete-how-to.html see the section on hiding your deductible contributions contained in your IRA in your 401K (assuming the 401K will accept them). Then you can do the converesion nearly tax free. No...
by kaneohe
Fri Aug 01, 2014 10:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA Conversion timing?
Replies: 10
Views: 998

Re: Partial Roth conversion questions

I convert a big chunk of funds (do it in the last quarter of the year so you don't trigger quarterly taxes due before year end) and then when I'm doing taxes in the following calendar year, recharacterize the surplus, back to IRA. I am sure you can make multiple conversions throughout the year BUT ...
by kaneohe
Thu Jul 31, 2014 9:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Partial Roth conversion questions
Replies: 7
Views: 631

Re: Please confirm my back door Roth understanding

It is easier to put deductible contributions into one traditional IRA and non-deductible contributions into another traditional IRA so that when he withdraws or converts, he can calculate the taxable part easier. I don't see why it would be easier? The 8606 form calculation of the taxable part will...
by kaneohe
Wed Jul 30, 2014 2:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Please confirm my back door Roth understanding
Replies: 15
Views: 1348

Re: Which is King: Income Stream or $ Invested

http://www.immediateannuities.com/

for some equivalence: variables (age now, sex,whether there is a guaranteed payout period, etc.). If you know something specific about your life expectancy that might affect decision too.
by kaneohe
Tue Jul 29, 2014 3:48 pm
 
Forum: Investing - Theory, News & General
Topic: Which is King: Income Stream or $ Invested
Replies: 52
Views: 4583

Re: How to handle a company that won't honor a warranty?

I'm trying to see if I can get a free replacement part for my under-warranty treadmill, but not having much luck so far. The treadmill is 4 years into a 5 year warranty on parts & electronics, and a month ago some of the buttons on the console stopped working so you can't actually start the tre...
by kaneohe
Tue Jul 29, 2014 2:10 pm
 
Forum: Personal Consumer Issues
Topic: How to handle a company that won't honor a warranty?
Replies: 23
Views: 1485

Re: Was ready to pull plug on Janus..until

You might want to compare after-tax return rates as well (somehow). Actively managed funds tend to have larger distributions than passive index funds........some of them non-qualified dividends or STCG taxed as ordinary income which depletes your other assets.
by kaneohe
Tue Jul 29, 2014 2:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Was ready to pull plug on Janus..until
Replies: 66
Views: 4053

Re: Revocable Trust Tax Treatment

from the Forbes article: Here’s why. Most trusts (NON-grantor trusts) pay tax on capital gains and accumulated income that stays in the trust, while the beneficiaries pay tax on income that is distributed to them. So trusts—even relatively small ones—will be hit with the 23.8% capital gains rate (th...
by kaneohe
Tue Jul 29, 2014 10:13 am
 
Forum: Personal Finance (Not Investing)
Topic: Revocable Trust Tax Treatment
Replies: 9
Views: 557

Re: Rich Spouse, Poor Spouse

The only advantage I can think of is if you really are keeping finances separate, and you are being locked out of deductible tIRAs or something like that. In that case, I guess you should file separately. MFS is nearly always worse than MFJ for IRA deductions............. http://www.irs.gov/Retirem...
by kaneohe
Fri Jul 25, 2014 8:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Rich Spouse, Poor Spouse [Tax filing apportionment]
Replies: 77
Views: 5694

Re: Cost basis and mutual fund exchanges

The cost basis for each lot remains the same. However since the number of shares probably will change, you need to adjust for that. Suppose for simplicity that immediately after the exchange you have 2x as many shares. You translate each lot e.g. Lot 1= x sh Fund A to Lot 1 = 2x sh Fund B with the a...
by kaneohe
Fri Jul 25, 2014 6:40 pm
 
Forum: Investing - Theory, News & General
Topic: Cost basis and mutual fund exchanges
Replies: 4
Views: 619

Re: How to cash in Savings bonds (from 80s)

If they are worth a lot, you may need to file estimated taxes in the year you cash them in. Shouldn't be too bad assuming the EE interest is just an add on to a "normal" year. Can probably use the safe harbor of 100 (or 110) % of last years tax and just do a bit more withholding but, as y...
by kaneohe
Fri Jul 25, 2014 1:32 am
 
Forum: Personal Finance (Not Investing)
Topic: How to cash in Savings bonds (from 80s)
Replies: 14
Views: 1643

Re: How to cash in Savings bonds (from 80s)

also,if they haven't reached full maturity, the interest accrues in 6 mo. intervals so if you cash in a day early, you might miss the last 6 mo interest. I believe the 6 mo intervals go w/ the purchase date month so if bought in July, the interest months are Jan and July and cashing in the first day...
by kaneohe
Thu Jul 24, 2014 7:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to cash in Savings bonds (from 80s)
Replies: 14
Views: 1643

Re: MAGI and Lifetime Learning Credit

Worksheet 3-1.MAGI for the Lifetime Learning Credit 1. Enter your adjusted gross income (Form 1040, line 38) 1. 2. Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18) 2. 3. Enter your foreign housing deduction (Form 2555, line 50) 3. 4. ...
by kaneohe
Sun Jul 06, 2014 9:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: MAGI and Lifetime Learning Credit
Replies: 7
Views: 512

Re: IRA to Roth Conversion Deadline

You can do the Roth conversion whenever you want. Depending on what you are doing, sometimes it is better to do it soon after you make the TIRA contribution.
by kaneohe
Thu Jul 03, 2014 1:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth Conversion Deadline
Replies: 5
Views: 372

Re: Found an old deposit receipt for my late wife . . .

1. Don't custodians send out Form 5498 every year for IRA accounts? That happens only if during the year assets were contributed, rolled over, converted, or distributed. If the IRA is just plugging away with reinvested dividends there is no Form 5498. Specific Instructions for Form 5498 File Form 5...
by kaneohe
Tue Jun 24, 2014 10:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Found an old deposit receipt for my late wife . . .
Replies: 27
Views: 3821

Re: Tax Bracket Management at 15%/25% Boundary

ssc.........you are correct. I misread original amt as exclusive of QDI/LTCG when it was inclusive. Thanks for clarifying.
by kaneohe
Wed Jun 18, 2014 2:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Bracket Management at 15%/25% Boundary
Replies: 33
Views: 3333

Re: Tax Bracket Management at 15%/25% Boundary

2. Make sure you understand how qualified dividends and long term capital gains are taxed. Example: if you are $4000 above the top of the 15% bracket, and have $8,000 in QDI and LTCG, then $4000 of it is taxed at 0%, and the other $4000 is taxed at 15%. And (if the rest of your 1040 is plain vanill...
by kaneohe
Wed Jun 18, 2014 12:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Bracket Management at 15%/25% Boundary
Replies: 33
Views: 3333

Re: How much do you contribute to your HSA?

[quote="Bill M" I'm somewhat AR about records. I keep all the EOB forms from UnitedHealthCare and the Dental plans (downloaded as pdf files), and also scan the insurance premium statements and other bills for deductible medical expenses. Then there is a Excel spreadsheet that ties them all...
by kaneohe
Wed Jun 18, 2014 8:31 am
 
Forum: Personal Finance (Not Investing)
Topic: How much do you contribute to your HSA?
Replies: 17
Views: 951

Re: New job: Trying to decide on tax exemptions and withhold

Here is one approach: calculate by hand your estimated income from your 2 jobs. Use a tax calculator like Taxcaster (google for it) and input your earned income and any other income you have as well as your deductions (or use standard deduction) to calculate your estimated tax for the whole year. Su...
by kaneohe
Tue Jun 17, 2014 9:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: New job: Trying to decide on tax exemptions and withholding
Replies: 3
Views: 359
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